Silver Rate Forecast in India: 2024 Predictions 

Silver, which is called “poor man’s gold,” proves to be a favorite among the population and attracts investors. Essential in industrial applications as well as a Store of Value, silver portrays its importance in the Indian Market. It thus becomes important for investors to predict the direction of change in silver prices due to the inability to predict future changes in economic conditions. This article goes on to list a prediction of the future risks of the price of silver in India for the year 2024, specifically identifying different factors that might affect the market, the trends to expect, and possible forecasts.

What is silver?

Silver is a precious metal and used in electrical, jewelry, industrial, photography, and silverware applications among others; the following factors affect its price:

Silver is one of the most famous and valuable precious metals, and it remains in demand permanently side by side with gold. It has proved essential in the production of coins and ornaments over a very long-standing time. It has also made a position to be the most preferable investment among investors in order to guard their wealth against the inflation rate.

The history of silver is quite vast, and it was probably used as currency in Ancient Greece and Rome and was regarded more as ornaments and cutlery. Silver was considered to be of much importance during the 16th and 17th centuries when Spanish colonies were established in South America and when operating mines with production volumes of large silver amounts.

The said precious metal was also influential in the United States during its rise to economic power. In particular, the discovery of the Comstock Lode led to a profound increase in the development of silver production.

Besides being a primary commodity in trading, silver has continued to be incorporated in many industries such as; photovoltaic cells, ornaments, wires, and medical applications.

Silver is usually bought and sold in units of troy weight, namely ounces. The LBMA Silver Price is the global benchmark, with the price set each working day at 12:00 GMT <There is no exit record in the case of suicides by hanging or any cases where no pony was called for> They make up a number of market participants including jewelers, producers, refiners, investment banks, and central banks.

Silver is volatile and reacts even to the changes in the value of the US dollar and trends in the US interest rates. The interest rates will rise and the yield will support the US dollar as well as diminish interest in silver as it is not yielding. Silver in the course of its price movement is generally found to be adopted during risk-off mode and is considered a safe haven asset.

Historical price performance

The process of getting to the present has seen the silver prices also increase, though slightly and steadily in the first three quarters of the 20th century and with very low fluctuations. As for the precious metal, 1980 was characterized by the greatest parabolic pricing due to manipulation by the Hunt brothers. Finally, in 1979 three brothers began to invest large sums into the purchase of silver which finally resulted in the fact that they possessed one-third of non-governmental Silver in the entire world.

The price of silver increased significantly to ₹ 4163.50 which was the highest record it has ever attained. We have observed that the average gold settlement price as of March 2013 was ₹ 2914.45 per troy ounce, although that was a constantly growing figure of 700% year on year. When the prices began to rise, the Hunt brothers had to borrow money to cover the margin required for maintaining their large position, which led to panic in the market. Some financial lessons in America in the long run helped the two brothers get credit from a group of US banks at interest, which also rescued several brokerage houses from the brink of collapse.

Silver prices sharply declined after the above-mentioned occurrence and began sluggishly sliding down in the 1980s while the 1990s saw slight fluctuations in the prices.

Bearing demand really started to ramp up again in the 2000s: the Great Financial Crisis led people to flee to safety, to the likes of silver. Gold once again regained the ₹ 1665.40 mark in 2008 for the first time in 28 years for the same metric. They tumbled slightly lower soon thereafter but sharply increased in 2011 because of potential eurozone problems and excessively large quantitative easing programs that central banks around the world have been undertaking.

This great run was cut short shortly afterwards though, with silver declining and holding around the ₹ 1249.05 level by 2014, only three years after nearly breaching ₹ 4163.50 once more.

Silver went back online again during the COVID-19 period which made investors struggle to save-haven investments. It has been consolidating as any combination with an inclination to higher interest rates limits the upside.

YearsAverage Price (INR per kg)Yearly Change (%)
201029,070
201153,350+83.55
201257,000+6.84
201348,500-14.91
201440,600-16.32
201536,000-11.33
201642,000+16.67
201738,500-8.33
201838,000-1.30
201946,000+21.05
202062,000+34.78
202169,000+11.29
202266,000-4.35
202370,000+6.06

Silver rate in India for the last 10 days

Date10 grams100 gramsYears
27 May₹ 930.00₹ 9300.00₹ 93000.00
26 May₹ 915.00₹ 9150.00₹ 91500.00
25 May₹ 915.00₹ 9150.00₹ 91500.00
24 May₹ 920.00₹ 9200.00₹ 92000.00
23 May₹ 925.00₹ 9250.00₹ 92500.00
22 May₹ 958.00₹ 9580.00₹ 95800.00
21 May₹ 946.00₹ 9460.00₹ 94600.00
20 May₹ 965.00₹ 9650.00₹ 96500.00
19 May ₹ 930.00₹ 9300.00₹ 93000.00
18 May₹ 930.00₹ 9300.00₹ 93000.00

Factors Affecting Silver Price

  • This could impact the price of silver since it will affect the stability of the US dollar and, ergo. mockito A Strong dollar = Low silver market price. The less that one dollar is worth; the higher silver prices go As such, silver prices are influenced by efforts to measure industrial demand for the metal. Increasing metal in smartphones, computers, and digital TVs Silver is one of the best conductors and therefore has massive use in electricity markets. The price of silver can also be driven by industrial demand.
  • The price will depend on the global production numbers. Being a precious metal, its price is determined according to the market supply.
  • Market indicators of silver prices are the dynamics of supply and demand. Historically people will turn to gold and silver when inflation is high as a hedge on their investments. In the same way, as more people want it, the price will also increase along with demand.
  • The silver price has been known to act as a sentiment tell in the gold space. As the gold moves silver then tends to as we have shown on a chart today.

Silver Price Forecast and Prediction for 2024

Some major price fluctuations were witnessed in 2023 for silver but on the whole a mixed bag of a year. The low came in March at ₹ 1689.55 and just three weeks later a high of ₹ 2166.69 in April. The ₹ 1915.21 – ₹ 1998.48 area was average — and is still a while away from all-time high prices even as gold exceeded prior levels last year.

For 2024, the dollar may be one of the things to watch out for in terms of how it influences silver prices. The markets have pretty much decided US interest rates have peaked, the writing is on the wall for a weaker USD and we saw some of that in 2023. Moreover, this is expected to either persist or increase in 2024 and rate cuts are possible (more likely in the second half of the year). A lower interest rate outlook for the face of both high and insolvent private sector debt on a plethora of derivatized insolvency is clearly going to see the dollar decline further in value (as it has been doing since January) — should help supply some momentum back into formative 2024 silver price dynamics.

While in 2023 mining output posted a 2% increase from the previous year, it still resulted in an overall deficit due to just 1,024.9 Mounce mined on one hand (upper Silver Institute) and demand of around 1,167 Mounce. Investment demand is actually falling in 2023 (-7%) whilst industrial demand continues to increase and as mining costs also only go up, —

In 2018, silver use in solar photovoltaics increased by a further 15% and green technology has remained one of the largest demand opportunities for silver. This is expected to further increase the industrial demand for silver as many countries are planning legislation to move away from fossil fuels. As long as there is no significant growth in mining production in the foreseeable future, the deficit of supply will only widen which in turn boosts the price of silver.

Additionally, some geopolitical factors may drive an increase in demand for safe-haven assets in 2024, however, it seems that last year’s events led to a decreasing impact from conflicts like Ukraine or Gaza. Silver can also be affected by an escalation in the Middle East or the appearance of any new conflicts. Also, the US election can influence the dollar’s rate direction.

Predictions about the silver price of 2024 are not very consistent but most analysts do believe that it has a good potential for appreciation during the second semester and this should happen when the Fed starts cutting rates. The primary condition to move on to the major increases is a convincing breach above last year’s high at ₹ 2165.02 and so far ₹ 2498.10 is regarded as a crucial goal. There are some scenarios where prices are forecasted to go even higher than that, while the minority expects silver to keep fluctuating within the ₹ 1998.48 – ₹ 2165.02 range.

DateOpening priceClosing price Minimum priceMaximum priceChange 
July 2024₹ 2612.76₹ 2681.13₹ 2611.76₹ 2681.13+2.55℅
August 2024₹ 2680.29₹ 2709.86₹ 2669.97₹ 2709.86+1.09℅
September 2024₹ 2720.85₹ 2632.41₹ 2632.41₹ 2725.18-3.36℅
 October 2024₹ 2629.50₹ 2646.99₹ 2623.09₹ 2648.15+0.66℅
November 2024₹ 2643.99₹ 2642.91₹ 2642.07₹ 2647.90-0.04℅
December 2024₹ 2643.57₹ 2643.07₹ 2631.00₹ 2643.57-0.02℅

Conclusion

As India gradually recovers economically, industrial demand spending and investment interest in silver will continue to boost the prices | Sneak peak of Silver price forecast in INDIA [2024] Although predicting prices to the exact number still proves difficult, we can consider historical data and expert opinions as well. Be watchful investors and start with diversifying into a mix of asset classes and do not ignore the reasons behind investing in silver to maximize the gains!

With its dual demand from both industrial and investment sectors, purchasing silver is a strategic play for investors looking to protect their portfolios against inflation and diversify their assets. As always, special research and market monitoring is required for profitable investments.

FAQs – Silver Rate Forecast

Why is silver considered a good investment in India?

The dual role of silver as both a precious metal and an industrial commodity makes it a good investment in India. It offers an inflation hedge, diversifies investments, and has significant industrial demand, particularly in the context of renewables.

How does the global economy impact silver prices?

Silver prices are heavily impacted by the global economy. During times of economic recession, silver prices typically increase as it is viewed as a safe-haven asset. Conversely, during periods of growth, industrial demand for silver can also rise causing prices to go up.

What are the risks associated with investing in silver?

Risks associated with investing in silver include price volatility, market speculation, changes in industrial demand, government policies, and currency fluctuations. In addition, silver prices can be affected by geopolitical events as well as technological advancements.

How can you invest in silver in India?

To invest in physical forms such as coins or bars; investing in Silver ETFs; Mutual funds that invest in Silver; and Trading futures contracts on Silver. 

What is the effect of industrial demand on price levels for silver?

The influence on gold price growth is due to industry production.